NUCLEAR PROLIFERATION U.S. offers to talk with Iran if atomic activities on hold

The U.S. has had no diplomatic ties with Tehran since 1979.
WASHINGTON (AP) -- The United States said Wednesday it would join in talks with Iran over its disputed nuclear program if Tehran first agreed to put challenged atomic activities on hold, a shift in tactics meant to offer the Iranians a last chance to avoid punishing sanctions.
Iran dismissed the offer as "a propaganda move."
Before leaving for meetings in Europe on Iran, Secretary of State Condoleezza Rice said that though the U.S. was willing to join talks between European nations and Iran, it was also helping to prepare a package of sanctions that Tehran could face should it decline the new offer.
"We're prepared to go either way," she said
At the White House, President Bush said, "I believe that it's important that we solve this issue diplomatically, and my decision today says that the United States is going to take a leadership position in solving this issue."
The overture to join stalled European talks came after mounting pressure on the U.S. from European allies.
Here's the situation
The administration is convinced Russia and China would support sanctions or other harsh measures if new talks fail to persuade Iran to abandon nuclear efforts that the West fears could lead to a bomb, said a senior administration official. The official briefed reporters on condition of anonymity because the secretary was continuing talks with other countries.
Rice will be working to reaffirm such support today.
The Iranian news agency said Iran accepts only proposals and conditions that are in the nation's interest. "Halting enrichment definitely doesn't meet such interests," IRNA said.
The United States has had no diplomatic ties with Iran and few contacts at all with its government since Islamic radicals took over the U.S. Embassy in 1979 and held diplomats for more than a year.